Warning! MEG Financial, Inc. Emphasizes the Importance of Key Man Insurance in View of Recent Financial Ratings Cut of Warren Buffett’s Berkshire Hathaway.
Pensacola, Florida April 3, 2009- MEG Financial, Inc., a national specialty insurance brokerage agency, is warning businesses of all sizes to hedge against “key man risk”. Any successful company depending upon one or more “key people” must consider key man insurance. The recent Fitch Ratings downgrade of Berkshire Hathaway (NYSE: BRK-A), one of the nation’s most respected investment holding companies, emphasizes how important one individual can be to the success or perceived success of an organization. One of the chief reasons Fitch provided for cutting the ratings of Berkshire Hathaway was “key man risk.”
The Ultimate “Key Man”
Warren Buffett, the 78 year old “Oracle of Omaha”, is Chairman and CEO of Berkshire Hathaway and its largest shareholder. He is known the world over for his ultimately successful value investing strategies and as of 2009 ranks second on the Forbes list for richest people in the world. Obviously, his significance to Berkshire cannot be overstated.
Key employee exposure is not exclusive to large publicly traded organizations like Berkshire Hathaway. Truth is, small and medium sized businesses are even more reliant on the talents and experience of a select few. In these cases, it is even more crucial to protect the company from the untimely death or disability of a significant bottom line contributor. With smaller organizations, one individual can be so vital to the overall success of a business that if they leave the company, become disabled or die, the company dies as well. The good news is that there is an easy and inexpensive way to protect against the risk of the loss of a key employee or executive.
Key Person Insurance is the Best Solution to “Key Man Risk”
Key man insurance, commonly referred to as key person insurance, is the most effective and efficient tool a business can use to guard against the death or disability of a highly valued employee or business owner. For years, companies both large and small have purchased and owned both key man life and key man disability insurance policies on their strategic people. This risk management strategy assures business continuity in the unforeseen circumstances of a death or disability.
Berkshire Hathaway’s recent downgrade by Fitch emphasizes the need for businesses of all sizes to consider key man insurance. If Berkshire Hathaway can be downgraded for its exposure, what company is immune to “key man risk?”
For additional information on key man insurance, contact Michael E. Gray, Jr., Independent Insurance Agent and President of MEG Financial, Inc. or visit our website: keypersoninsurance.com
MEG Financial, Inc.:
Since 2000, MEG Financial, Inc. of Pensacola, Florida, has worked with thousands of businesses to manage key man risk. MEG Financial’s website, www.keypersoninsurance.com offers instant key man insurance quotes for companies of all sizes.
Michael E. Gray, Jr., Independent Insurance Agent and President
MEG Financial, Inc.